I'm about to spend about $ 1,300 in a carpet cleaning machine http://www.mytee.com/products/product.php?id=K101. Now I can use a machine that makes http://www.hoover.com/product.aspx?model=C3820&ds=false fine of $ 350, but not as well as a commercial machine. In this I just made time job cleaning houses and offices. The contract includes an annual cleaning of carpets. I guess the rate to 20 cents per square foot if you want more than a once a year. This cleaning further increases the value of the service, but do not know how much. Would you say that 25-30 cents per square foot? An increase of five cents could take a year just to pay the purchase cost (26,000 square feet). Thank you.
logical approach. You must find ways to cover the cost of new machine and to maintain their profit levels. Presumably, however, the new machine allows you to clean at a rate faster than the previous. And finally, Are you making money now at 20 cents per square foot? This is a crucial issue, too. Let's start at square one. To determine your expenses, take the cost of the machine and will be amortized over the life of the machine. Maybe 2 years? This is your fixed cost. Calculate how you clean the carpet during this period of time. (Hours worked x square feet per hour) from which to calculate your fixed cost per square foot. Now they are its variable costs. This would be the carpet, etc. The cleaner, the most difficult. supply houses carpet can say how many square feet per gallon Hoover go. You include that in your cost per square foot. Include all other variable costs, too. Include other costs. How should we spend on marketing? On the phone? In the shipping? Note that on a monthly basis, then divide by the average square feet of carpet cleaning in a month. That tells you about his other income (expense) costs. So now you have a cost per foot which includes fixed costs, costs variable and fixed costs. There is a cost not included: Your workforce. How much is your time? Call it a value of $ 20 an hour. How many feet of carpet cleaned in one hour? Say, for round numbers, 2,000. It's a penny per square meter walk to their work. Their number should probably be more higher than that but that's just one example. Now, add your fixed costs, variable costs, overhead and labor costs. They are in the format of cents per square foot. This is the amount you charge. Now all you have to do is replace the fixed costs of new (cost higher per square foot) for the new machine from old machine. And if you want more precision, it is possible to reduce the number of other just when productivity is increasing because of the new machine. But the sense that process for determining the amount receivable for Porter.
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